Trading Lesson of the Week

• November 16, 2025
• T.CNQ | T.IPO | T.SGY

In This Week’s Issue:

• Market Outlook – Interest Rate Focus
• This Week’s Market Minutes video – Is it Time to Buy NVDA, PLTR and AAPL?
• Trader Training – 10 Essentials for Trading Success
• Strategy – Energy Stocks Improving

Market Outlook – Interest Rate Focus

While interest rates are being cut around the world, the prospect for another rate cut in the US is less than hoped. This has lead to a gradual drop in the US bond market, driving up interest rates. That is felt most in the stock market through the Small Cap stocks which have suffered more than the large caps. Buyer enthusiasm has been reduced over the past 6 weeks, making it necessary to be very selective and patient with new buying opportunities. You have to focus on the abnormal stocks with the biggest crowd, as indicated by a high number of trades.

In this environment, focus on Alpha stocks that are trading abnormally as they will disconnect from the gyrations of the overall market. The market uncertainty will mean that there are fewer of them so be fussy and patient. Trade less until conditions normalize.

This Week’s Market Minutes Video – Is NVDA a Stock Bubble About to Burst?

Is it time to buy NVDA, PLTR and AAPL, given how strong they have been? This week's video looks at how to buy strong stocks with upward momentum. Then, I provide my analysis of the overall markets and the trade of the week on CYPH.

Click Here to Watch on YouTube

https://youtu.be/Aai8w0JkA6A

Commentary – 10 Essentials for Trading Success

Here’s a list of key priorities that I believe are crucial for becoming a successful stock trader:

Find Alpha: Look for stocks that move based on their own unique story, less correlated to the broader market. These Alpha stocks are defined by unusual price and volume activity, which attracts attention and emotion. This emotional surge disrupts market efficiency, creating profitable opportunities.

Master Yourself: The stock market often exploits our emotional attachment to money, which clouds our judgment and leads to poor decisions. To succeed, you must learn to control your emotions and avoid letting them drive your trading decisions.

Trade with Positive Expected Value: Your strategy should be grounded in logical, testable rules that consistently produce profits across different market conditions. Your strategy should tilt the odds in your favor, not against you. Without that edge, you're just gambling.

Define Your Process: A great strategy is only effective if you have a clear, efficient process to find and act on opportunities before they slip away. It's not just about picking the right stock—it's about timing your entry and exit. Without a solid process, even the best strategy will fail.

Maintain Optimism: Your mindset shapes your results. A positive outlook helps you navigate tough times and stay focused on success. Optimism doesn’t mean being reckless—it’s about staying motivated and disciplined rather than chasing quick, risky gains.

Work Hard: While trading itself can be straightforward once you’ve defined your strategy and controlled your emotions, reaching that point takes significant effort. Many traders fail because they don’t put in the necessary work, discipline, and perseverance to get there.

Stay Focused: The market can shift quickly, and if you’re not paying attention, you can miss out on opportunities or watch a solid trade turn into a loss. When you’re in a trade, stay fully engaged.

Have a Plan: A well-thought-out, tested plan is your safeguard against emotional decision-making. Your plan should be clear and concise enough that even a computer could follow it. The moment you leave room for subjective judgment, you risk making emotional, irrational decisions.

Gain an Edge: In the competitive world of trading, you need an edge to succeed. This could come from superior information, a better strategy, advanced technology, or stronger emotional discipline. Whatever gives you an advantage over others can make all the difference.

Trade Smart: Ultimately, success in trading comes down to how well you can combine strategy, discipline, and emotional control. Keep learning, stay focused, and trade with purpose.